Skip to main content

About this Show

CNN Newsroom

News/Business. Breaking news and developing stories. New.

NETWORK
CNN

DURATION
01:00:00

RATING

SCANNED IN
Annapolis, MD, USA

SOURCE
Comcast Cable

TUNER
Port 1234

VIDEO CODEC
mpeg2video

AUDIO CODEC
mp2

PIXEL WIDTH
720

PIXEL HEIGHT
480

TOPIC FREQUENCY

United States 12, U.s. 11, Us 10, Washington 7, Europe 7, China 6, Unitedhealthcare 4, America 4, Gloria Borger 3, Harry Reid 3, Foodsafety 3, Mitch Mcconnell 3, Christine Lagarde 3, Breivik 3, Fred 3, United Nations 3, Astrazeneca 2, Emphysema 2, Imf 2, Gillette 2,
Borrow a DVD
of this show
  CNN    CNN Newsroom    News/Business. Breaking news  
   and developing stories. New.  

    July 31, 2011
    2:00 - 3:00pm EDT  

2:00pm
but its legacy lives on. rumors still swirl that the group exists but in total secrecy and guards holy grail. what sounds like fiction back to fact. we know breivik saw himself as a knight's templar. i new drug gang has arisen in mexico with the same name. they claim to live by a religious code, a copy of which the associated press obtained. it said the drug dealing knights will value the values society against materialism and injustice and tierney. it said it will be noble and courteous and honest. they are honest drug dealers selling marijuana, cocaine, whatever, in the name of god. under breivik's fascination is quite bizarre. people like breivik are trying
2:01pm
to resurrect the idea of a modern day crusade, a real clash of civilizations against what they see as islamic invasion of europe. in fact, muslims make up only 3% of europe's population and that's likely to rise to between 5 and 8% by 2025 and level out at that point. but that doesn't change the reality of the anger, hatred and the violence. ironically, in breivik's nostalgic view of the medieval world, it resembles nothing so much as al qaeda, another terrorist organization fundamentally opposed to the modern world. we still don't know if breivik's boast that there are more knights waiting to act are true. but if it's depiction of the knight sounds familiar, it is because it too is mirrored in islamist terror, what a suicide bomb every, is a lone fighter
2:02pm
acting in the so-called interest of a larger movement and willing to kill innocence to draw attention to the cause. while we've all focused on the dangers of radical islam, the attack in norway should remind us there is actually a pretty large problem with other sources of terrorism in the west. the european union's 2010 terrorism situation and trend report had some fascinating findi findings. it showed of the 294 terror attacks committed in europe in 2009, only one was conducted by islamists. that's a third of 1%. the most recent stis stick showed there were 249 terror attacks in 2010, only three of those attacks were carried out by islamist terrorists. that's about 1%. most of the attacks in 2009 and 2010 were by separatist groups
2:03pm
or an ar kists. it is a real problem and islamism terrorism a real threat? we're likely to be blindsided by another virginia tech massacre. the enemy can just as easily come from deep within. we'll be right back. >> you're quite right in saying that there was a positive bias towards the united states of america towards treasury bills. that was the case historically. it was unheard of only six months ago to imagine that the united states could be under negative watch by the rating agencies. do we have? all four of us, together? 24. he's low fat, too, and has 5 grams of sugars. i'll believe it when i--- [ both ] oooooh... what's shakin'? [ female announcer ] as you get older, protein is an important part
2:04pm
of staying active and strong. new ensure high protein... fifty percent of your daily value of protein. low fat and five grams of sugars. see? he's a good egg. [ major nutrition ] new ensure high protein. ensure! nutrition in charge! [ding]
2:05pm
announcer: clean kitchen surfaces, utensils, and hands with soapy water. one in 6 americans will get sick from food poisoning this year. keep your family safer. check your steps at foodsafety.gov.
2:06pm
2:07pm
i'm freds rick ka whitfield. a check on our top story right now. there is new hope about a possible agreement to raise the u.s. debt ceiling. >> i think we're very close to being in a position where hopefully i can recommend to my members they take a serious look at it and support it. >> and get it done when? >> soon. >> today? >> soon. >> certain things i think are
2:08pm
finally agreed on. we're not going to accept the republican approach that says we have to revisit this issue on the debt ceiling every few months. we need a long-term extension of the debt ceiling for the economy. secondly we'll make a significant down payment on our debt as part of this debt ceiling extension and set up a mechanism for longer term savings when it comes to the debt. the key element that we're really wrestling with is the enforcement mechanism. >> the obama administration says the government will default on its loans unless the debt ceiling is raised before tuesday. we'll have much more on these latest developments at the bottom of the hour when the newsroom begins after fareed zakaria gps begins in a minute. christine la guard, thanks so much for joining us. >> my pleasure. >> imf released a report in which it said that crisis of confidence in the sovereignty
2:09pm
will cause a crunching global recession. how worried are you right now? >> i am worried because this debt ceiling issue has not been cracked. the issue is being addressed from multiple angles but the debt ceiling is still on the table. and the united states is the largest economy in the world. one that matters, one that has still over effects not just around the borders but on the complete basis globally. it's an issue that really is lurking in the background of each and every economy of the world. >> how do you think the world is watching the united states right now? >> i think the word is watching the united states with trep i hadation, with anxiety and concern but also with hope because the united states of america is an extraordinary
2:10pm
nation. it's an extraordinary democracy and one that doesn't necessarily travel with a straight line policy all the time. but there is hope that this issue will be addressed responsibleably and with accountability not only to the people of the united states but also to the people of the world. instability is never a good idea, never a good idea. and this level of uncertainty, the trepidation rising from august the 2nd is bringing about a lot of instability. >> do you think that the dangers that people speak of could happen any way, that watching this process, markets might lose that unshakeable confidence they had that u.s. treasury bills were the bedrock of the international financial system and that they were the cheapest debt that was the place where people went as a flight to
2:11pm
safety. is all of that already being jeopardized? is there a danger that is being undermined? >> you're quite right in saying that there was a positive bias towards the united states of america, towards treasury bills. that was the case historically. and the current crisis is probably chipping into that very positive bias, that very strong confidence that generally led to flight equality in investment in treasury bonds is slightly eroded at the moment. it was unheard of only six months ago to imagine that the united states could be under negative watch by the rating agencies. >> does that mean that the dollar's role as the reserve currency of the world which provides united states with enormous privileges, lowering interest rates, is that also you think potentially in danger?
2:12pm
>> it has been one of the assets of the united states of america, what a former president of a european condition called the exosh tant privilege of the u.s. dollar, that is what's at stake. i'm not suggesting that it's going to change overnight because the currency evolutions take a lot of time. if you observe the evolution of the sterling at the time when the industrial revolution was over and europe had gone through massive wars that took time but gradually eroded -- >> in 1945 suddenly one day it was over, right, for the sterling and dollar replaced it? >> yeah. >> if that would have happened, would it be the euro or yuan? >> no idea. as i said, those are long-term movements. it does not -- unless lr very,
2:13pm
very harsh circumstances of the kind you referred to the second world war, it happens over time. and we need to make sure it does happen over time so there is a level of stability and not the excessive volatility that is not good for markets. >> you spoke in a speech at the council on foreign relations this week about the united states and its economic problems and you point out that the united states is going through a jobless recovery. you pointed out that this is another jobless recovery because the last one most people don't realize, the one in the early 2,000s was also a jobless recovery. do you have a sense as to why america seems to have gotten under this new model of the economy comes back but the jobs don't? >> well, first of all, i did not say it was going through a jobless recovery. i was saying that the recovery needs to add jobs to the economy
2:14pm
equation of the united states of america. >> it's a diplomatic way of saying it about tbut it's the s >> you're right about the significant breakthrough in the late '90s, early 2,000s did not bring about so many jobs because there was a massive increase of productivity that was fueled as a result of these vexinvestment and the ability to move data around and increase the velocity of economy factors. now we don't see that sort of technology breakthrough as we did in the beginning of the century. where is the growth going to come from? you've got multiple sectors where it could come from but it requires confidence. it requires investment. it requires a focus on those areas that will be stramt strategy going forward. >> the u.s. is not investing
2:15pm
right now. is that a danger to its future growth? >> failure to invest is a danger to future growth but confidence is the key. for private investor, for an entrepreneur or for local authorities to decide to invest, they have to have confidence in the future. and clearly, the issue the sovereign debt of the united states has to be addressed in a sensible way for the long-term and fiscal consolidation needs to take place. it's a complicated balancing act. it's a combination of number one taking the appropriate fiscal con solid dags mesh you'res and on the other hand making sure the components necessary for growth are -- >> do you have confidence he can handle the debt crisis. >> i have every confidence he'll put all of his energy and not short of that and all of his
2:16pm
determinati determination, not short of that either, to resolve of the issue. he's fully aware of the implications and necessity to do so. i really wish him the best of luck and courage. >> he will be back with christine lagarde, we're going to talk about europe and what the next possible crisis in the euro zone will be.
2:17pm
2:18pm
2:19pm
2:20pm
we are back with christine lagarde, the new head of the international monetary fund. let's talk about the underlie issue behind the greek crisis because it has implications for the united states. the strategy that was adopted for the last few years has been that countries have that the huge debt and deficit problems need to consolidate their balance sheets and to effect raise taxes and cut spending so they close the budget deficits. but the result of this in almost every country has been that the economy has suffered and taken a hit because you are taking money out of the economy or the government isn't spending, you know, it means there is less economic activity and the government fires government
2:21pm
workers, they don't go out and buy things. is it possible that the imf received economic wisdom on this issue simply has it wrong? that at a moment where you have deflation circumstances or liquidity, whatever jargon you want to use, in unusual depressed economic circumstances, you should not be forcing the countries to cut, cut, cut? >> there's the short term and long term. unfortunately, you have to start somewhere. in the medium and long term, there is no question that fiscal consolidatio consolidation, reduction of deficit and restoring the debt pattern to something that is sensible and not outrageously high actually is positive for the economy. in the immediate short term, i'm not hiding behind numbers, there is a downside effect. but it's a measure that has to
2:22pm
be taken. it's a question of doing it gradually, making sure that the less privileged, the most exposed people are not taking a big hit, not suffering most, but if you don't begin somewhere, you never consolidate. so that's a balancing act. >> what you're describing sounds a lot like the obama plan in terms of agradual process that doesn't hit people who are most exposed too hard. >> it has to be gradual but it has to be determined. there has to be very strong political resolution determination drive to actually make it happen because countries cannot run with massive deficit. >> is there a kind of broader crisis here but in europe particularly in europe but in the western world in general. if you look at the percentage of gdp that government took up in a place like france in 1950, it
2:23pm
was 30%, it's now 55% roughly. the share of government to gdp has grown so much in western countries as they have been more generous with the welfare states and they are wonderful social policies. is there a problem here that ultimately you can simply cannot grow at the rates that perhaps what were historically true if you have this larger role for government? >> well, there are things that used not to be expected which are expected today, whether you look at social security, pension entitlements, expectations from the health system and so on and so forth. all of that has a cost. the real question is, is it well spent when it's under the management of the state or the local authorities in the state or in the localities is at
2:24pm
issue. there's clearly a need for those public authorities to you know, not only stick to the knitting but also use public money wisely and efficiently. >> you -- the imf has once again come out with a report saying the chinese currency is undervalued. is it important china step up to the plate and do something about this? >> it's a constant evolution. you refer to that exchange rate range. for first time china accepted it be made published. be communicated to the rest of the world. this is a change. and we are all interlocked and what happens in china will have an effect in the united states and vice verse is a, what happens in the low income countries will have an effect on what happens in the advanced countries. china will always need good and solid clients.
2:25pm
it is not an exporting country in the middle of nowhere. we depend on each other, all of us. >> he recommended that the head of the imf had a coat of many colors to reflect the many parts of the world, he or she was meant to represent. i look at you, you're wearing this very conservative gray. are you going to buy a new coat? >> that's because i came to new york but i have this very sort of sparkling and animated broech to indicate the colors. >> christine lagarde, pleasure to have you on. >> thank you. >> we will be back.
2:26pm
[clucking] [clucking] [ding] [clucking] announcer: separate raw meats from other foods by using different cutting boards. 3,000 americans will die from food poisoning this year. keep your family safer. check your steps at foodsafety.gov.
2:27pm
2:28pm
2:29pm
unlike fish oil, megared softgels are small and easy to swallow with no fishy smell or aftertaste. try megared today. the united nations doesn't just host world leaders, send out peace keepers and feed the hungry. i'll bet you didn't know this but it also keeps track of how many live stock walk the earth. which brings me to the question of the week. according to the united nations approximately houx chickens are there around the globe? a, 190 million, b, 1.9 billion, 19 billion, or d, 190 billion.
2:30pm
stay tuned and we'll tell you the correct answer. make sure you go to cnn.com/gps for ten more challenging and interesting questions and while you're there, check out our website, the global public square. you'll find smart interviews and takes from our favorite experts and find all of our shows. if you've missed one, you can click an watch. don't forget you can follow us on twitter and facebook. this week's book of the week is the latest by nobel prize winning economist michael spence called "the next convergence." future of economic growth in a speed world. it is a smart result of the global economy from one of the best and most unbiased economists in the world. and now for the last look. this isn't the latest hollywood blockbuster or new japanese monster movie, green blob attacks china is something that is actually happening as
2:31pm
evidenced by this and this. and this. disgusting, right? it's an algae bloom that has spread across more than 7,000 square miles of the yellow sea. it's gotten so bad they've called in the military to help. this is number one beach once regarded as the best beach city in china. best beach maybe not anymore. luckily for these seemingly unconcerned swimmers, it's not harmful to humans but could kill off marine life. the correct answer to the gps challenge question was c, there are 19 billion chickens in the planet according to the united nations. the height nation with the heightest is ba rain. much more than a chicken in every pot. i wonder how they figure this stuff out. go to our website for more. thanks to all of you for being
2:32pm
part of my program this week. i will see you next week. you're in the cnn newsroom, i'm fredericka whitfield at the world headquarters in atlanta. a dramatic day in washington as republicans and democrats race to keep the government from faulting. a new debt limit deal is in the works this after senate republicans blocked a move by democrats to vote on harry reid's debt limit plan earlier today. >> on this vote the as or 50 and neys are 59. the three fifths of the senators chosen, the motion is not agreed to. >> the final vote 50/249. they are now focusing on refining a deal after hashing out -- sources close to the -- tell us it's a $3 trillion package. here's what the top republican
2:33pm
told political analyst gloria borger on cnn's state of the union. >> for the first time in 235 year history, we're not going to have job killing taxes in it. we'll deal with a problem the american people sent us to deal with. we don't think we have this problem because we've been taxing too little. we've been spending too much. i think we're very close to being in a position where hopefully i can recommend to my members they take a serious look and support it. >> and get it done when? >> soon. >> today? >> soon. >> senate majority leader harry reid says he is cautiously optimistic a deal will be reached but added several issues must be settled. >> when a agreement has to have a long-term approach, that's a long-term approach we've taken in the senate, we've forced in the senate is absolutely
2:34pm
necessary. we must give financial markets confidence this country won't shirk its obligations now or in the future. >> so what do we know about this deal which combines cuts in spending caps but no increases? joe, what specifics do we know of. >> reporter: hey, fred, you mentioned a lot of them there, $3 trillion deal, a lot of spending reduction in there also a sizable increase to the federal debt limit, that of course would extend out beyond next year's presidential election, it's also election for a lot of members of congress as well. there wouldn't be very worrying about that. there are some other things in here including sort of advancing the cause of the balanced budget amendment which is something people over in the house side, many of the republicans there, the tea party republicans are so interested in. the other thing that i think is
2:35pm
a bit controversial is this formation of a super committee of congress to recommend cuts going forward and there's some enforcement there that has made at least part of this very controversial. congress does not trust itself to actually follow its own rules once it makes them about cutting the budget and cutting spending and so they are trying to figure out a way to put some type of enforcement mechanism in there that affects both democrats and republicans and gives each the same amount of pain. that's sort of a summation of what all this is. >> whose fringer prints are on this new deal the framework, the white house, the gang of six, speaker bayner, majority leader reid, who? >> i think there's everybody in there. everybody you mentioned, senator mitch mcconnell, the republican is one of the key people. he's the senate republican
2:36pm
leader. senator reid needed a deal very badly here. the vice president and president of the united states have been on in these conversations as well as the speaker of the house john boehner. it's definitely some of this and some of that right now. >> okay, while mcconnell and reid are expressing optimism, house speaker john boehner did say in an e-mail that we have just recently got received, that he sent this e-mail to follow low lawmakers saying there are quote serious issues that remain -- he's calling for a conference call today. is that true? is there time for that? >> well, he didn't say what time the conference call is going to be but it definitely sounds like he wants to talk to the rank in file on the house side. it's not clear what they want to discuss. we do know that a senior republican aid on the senate side has said there are concerns about this super committee business, not so sure about it.
2:37pm
and feears that what they'll en up doing is instituting increased taxes which is something republicans don't want at all and they are concerned it could lead to severe cuts in the defense department, something they don't want too. that's the kind of thing that has to be worked out. >> all right, joe johns from capitol hill. thanks so much for that. is there optimism from the white house on a debt plan? let's bring in white house correspondent dan lothian. what's being said about the latest developments. >> reporter: well, look, first of all the sense i'm getting is that republicans are expressing more optimism publicly than at least democrats and the white house, being cautiously optimistic here but one democrat familiar with the talks telling me things are in a much better place than they were 24 hours ago but top aides at the white house and other sources also again reaffirming that we have heard over the last 24 hours, that there's still not a deal. there's still a lot of work to
2:38pm
be done. again, certainly there has been movement as one person pointed out significant progress over the last 24 hours. at this point, as far as we know, there are no meetings that are on the schedule, no plans at this point for the president to come out and make any remarks but of course, all of that could change at the moment's notice. >> so, dan, we know the deadline is tuesday, is the white house setting a preliminary deadline for this evening in respect of the asian markets opening, trying to get something so there isn't another big hit on the markets? >> reporter: look, the white house is quite aware of that deadline. they are not sort of making any pronounce. s about when this has to get done, other than the fact it needs to be done soon, cautiously optimistic that it will be. everyone here is painting that picture of what will happen if in fact that debt ceiling is not raise. a lot of concern about what can
2:39pm
happen in the global markets and certainly what will happen here domestically. when you see what has happened in the past with other problems that the u.s. has had with its financial markets, it ripples across the world, the globe. so everyone is keenly aware of that. there are contingency plans but everyone is hopeful that they can get a deal done and that the u.s. will not go into default. >> dan lothian, thanks so much from the white house. this program note just what is it going to take to find a solution to the debt crisis. >> they break done all options, don't miss kt get it done" tonight 9:00 eastern time only on cnn. we're covering every angle of the debt deadline. the concern isn't just in this country as you heard dan say but around the world. the asian markets open in less than six hours and we're watching. ok. [ cellphone rings ] hey. you haven't left yet.
2:40pm
no. i'm boarding now... what's up? um...would you mind doing it again? last time. [ engine turns over ] oooohhhh...sweet. [ male announcer ] the chevy cruze with the my chevrolet app. the remote control car is finally here. well, now she's just playing with us. oh. [ horn honks ] under pressure. ♪ and pressure can cause anyone's deodorant to fail. ♪ introducing gillette odor shield antiperspirant. unlike regular deodorants, it targets and neutralizes odor at the source. help eliminate odor, don't just cover it up. ♪ gillette odor shield antiperspirant. also try odor shield technology in new body wash. ♪ but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice...
2:41pm
and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person about her care. we're more than 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare. my son and i never missed opening day. but with copd making it hard to breathe, i thought those days might be over. so my doctor prescribed symbicort. it helps significantly improve my lung function, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. with symbicort, today i'm breathing better, and that means... game on! symbicort is for copd, including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking it. [ whistle ]
2:42pm
with copd, i thought i might miss out on my favorite tradition. now symbicort significantly improves my lung function, starting within 5 minutes. and that makes a difference in my breathing. today i'm back with my favorite team. ask your doctor about symbicort. i got my first prescription free. call or click to learn more. [ male announcer ] if you can't afford your medication, astrazeneca may be able to help. if you're just joining us, we could be close to a deal to reach the nation's debt ceiling. we're hearing openty tix from both parties in the senate. is washington on the right path to avoid a downgrade of the u.s. credit rating? earlier gloria borger talked with a top economist about that. >> do you think this is also
2:43pm
enough to avert a downgrade from our aaa status right now? >> well, yes, of course i'm -- i'm not in the rating agency, i can't speak for them. but listening to what they have to say, i think this would be sufficient, yes. now, all of the rating agencies have different opinions. some may go down a different path but i think broadly speaking, if it comes close to what they are talking about now, this is substantive and i think it should avoid a downgrade. >> we're digging a little deeper on the credit rating issue. let's bring in ali velshi. the u.s. has a top of the line credit rating. what's your take? can the u.s. come out of this with its credit rating untarnish untarnished? >> probably not, fred. for a lot of reasons, first of all we're talking about a $3 trillion cut over ten years in the budget. most of the credit ratings have said $4 trillion over ten years is what they need. that said, part of the reason
2:44pm
why they've been threatening a downgrade is partially because of the u.s. debt situation and washington's seeming unability to get this done. there are probably three options here. no downgrade if we've got a deal reached and it's sufficient to the ratings agencies. then the possibility of a slight downgrade if no deal is reached. not a big one but little one. slight downgrade even if a deal is reached and finally the serious one, which it looks like we're headed towards avoiding is a major downgrade if the u.s. defaults on payments. everybody seems to be saying we heard mitch mcconnell saying we're not headed towards a default. everybody thinks they have a science as to what's going to cause a default and what isn't. the ratings agencies, fred, have not been fantastic at doing their work. we know this from 2008, from the
2:45pm
layman brothers debacle. we may not have dodged a downgrade entirely but may have dodged the worst of it. the us has never been anything but aaa since the first rating by moody's in 1917. most pay to be rated by the way. the u.s. does not pay to be rated. we pay $250 billion at the federal level in interest payments every year. that of course is what would go up if we lost the rating, fred. >> this past week, aali, the dow dropped 500 points or so, so if no deal by today and once the asian markets do open up, if it's about 8:00 eastern time, what are you expecting? >> well, it depends. as we get closer to this, with each half our or so we get new information. if it looks like by 8:00 tonight like there really is a deal and they stop posturing, we might be
2:46pm
okay on asian markets. if there is a deal with terms we can understand, i think markets will respond positively. if there isn't, this going to be a sense from the world you are really messing around and politics is overtaking economics and common sense. i think things can go any way in the next six hours. you know, you've been following as i have all day. you seem to be edging closer to a deal -- you lost $7 billion in the last week or so. i tweeted this out and had somebody tweet me to say that's ridiculous those are aren't realized losses. if you have a 401(k) and your stocks are down and you're panicked and friday came along, i don't want to wait until monday to see what happens, you realize those losses. if the interest rates go up it could slow down home prices and that creates interest rate increases, i think folks in washington working on this
2:47pm
should keep this in mind. home sales could stall, that's one leg of the economy and the prices could fall down further. >> as it pertains to the 401(k) loss, for every $100,000 people may have lost $8,000, that's the kind of hit -- >> just in this past week alone. >> not everybody can afford that kind of loss, right? >> by the way we're coming up with a special edition of "your money" about 13 minutes from now. >> i was going to remind people of that. thanks, appreciate that. latest on debt crisis talks and what it means for our economy and you, that special live edition of "your money", a few minutes away. just what is it going to take to find a solution to the debt crisis? wolf blitzer and don lemon break down the hurdles and options. don't miss "get it done", only on cnn.
2:48pm
there is hope apparently, iran may soon free two impris imprisoned american hikers. the reason why next. specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team. and i only need to talk to one person about her care. we're more than 78,000 people looking out for 70 million americans. that's health in numbers. unitedhealthcare. [pig oinking] [hissing] [oink] [oinking] [ding] announcer: cook foods to the right temperature using a food thermometer. 3,000 americans will die from food poisoning this year. keep your family safer. check your steps at foodsafety.gov.
2:49pm
[oinking]
2:50pm
an iranian court is expected to rule on fate of pro imprisoned hikers, josh fattal and sarah shourd and shane
2:51pm
bauer. shourd was released last year. a court hearing was held today. a lawyer for the imprisoned american said even if the verdict is guilty, the sentence may be limited to the time that they have already served. another iranian court case is also drawing attention. it involves this woman, who was blinded with acid after rejecting a man's advances. in a literal case of eye for an eye justice an iranian court sentenced the man to be blinded himself. but at the last minute today the victim called for leniency and the man was spared from blinding. and in the air north of anchorage alaska, a fatal collision between two small planes, one of them crashed killing all four people on board. the pilot of the over plane was able to land safely. both are float planes which can take off and land on water. three trees were planted
2:52pm
yesterday to honor victims of 9/11 attacks ten years ago. flight 93 crashed into this field after passengers stopped hijackers from using the plane to attack washington, d.c. families of those who died in the crash were on hand. >> my dad said that a living memorial in the tree is one of the best things you could have. >> 40 trees will be planted in all, one for each passenger and crew member. and no relief from the sizzling summer weather for texas. the state's severe drought shows no signs of ending. it's having a huge impact on crops and livestock which could push food prices up for all of us. in the coming week, more blistery heat with highs of 105 degrees or hotter expected in parts of that state. it has been 100 degrees or hotter in dallas for 29 straight days. >> and they are being described as a flash mob, a group of
2:53pm
largely composed of teenagers prowling philadelphia's center city district friday night, robbing and assaulting at least two pedestrians. >> it looked like a bunch of roaches swarming. >> you see 40 or 50 kids, up to no good. >> his whole face was bloody, wasn't con shens when the police got here. >> four suspects have been arrested ranging from 19 to just 11. matt damon rallied with thousands of teenagers in washington yesterday. the wally is billed as a save our schools demonstration to protest the use of standardized test to judge a teacher's effectiveness. he credited public school teachers with his success. >> i had incredible teachers and as eye look at my life today, the things i value most about myself, my imagination and love of acting and passion for writing, my love of learning, my curiosity. all of these things came from
2:54pm
the way i was parented and taught. [ applause ] >> the protesting teachers say the current obama race to the top education program relies as much on testing as no child left behind. >> peyton manning just got a whole lot richer, manning reportedly has signed a five-year contract worth $90 million. it works out to just $18 million a year. manning is a four-time most valuable player in the nfl. and behind closed doors on capitol hill, and even at the white house, ongoing negotiations to get a debt deal done. new developments happening every moment and we're bringing it live to you here at the cnn newsroom. transitions adapt to changing light so you see your whole day comfortably and conveniently while protecting your eyes from the sun. ask your eyecare professional which transitions lenses are right for you.
2:55pm
woman: discover the protection, comfort and convenience of transitions lenses for the entire family at transitions.com/walmart or visit a walmart vision center today. my son and i never missed opening day. but with copd making it hard to breathe, i thought those days might be over. so my doctor prescribed symbicort. it helps significantly improve my lung function, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. with symbicort, today i'm breathing better, and that means... game on! symbicort is for copd, including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. tell your doctor if you have a heart condition or high blood pressure before taking it. [ whistle ] with copd, i thought i might miss out on my favorite tradition. now symbicort significantly improves my lung function, starting within 5 minutes. and that makes a difference in my breathing. today i'm back with my favorite team.
2:56pm
ask your doctor about symbicort. i got my first prescription free. call or click to learn more. [ male announcer ] if you can't afford your medication, astrazeneca may be able to help.
2:57pm
a race against time on capitol hill. congress could be close to a deal to raise the nation's debt ceiling if one -- the whole world is watching and right now we are hearing optimism from the leaders of both parties in the senate but there are still some stumbling blocks, one involves a provision conservatives want, it
2:58pm
would require congress to provide a balance budget amendment. democrats on to that. gloria borger asked mitch mcconnell about that this morning. >> we intend to be voting on the balanced budget amendment in the senate and we'll let you know when that's scheduled. >> as part of this plan? >> we're going to be voting on the balanced budget amendment in the senate. i hope it will pass -- >> you're not talking about a guarantee of passage. >> that's an important restraint long term on the government of the united states which is certainly demonstrated in the last decade it can't get its financial house in order unassisted. >> the debt crisis is weighing heavily on the minds of u.s. troops in afghanistan. when joint chiefs chairman admiral mike mullen made an unnonsed visit to afghanistan, some soldiers asked about how the debt crisis would affect their paychecks. harry reid talked about the encounter on the senate floor.
2:59pm
>> soldiers admiral mullen talked with weren't asking about military strategy or how a drawdown would affect them. they asked whether they would get paid if republicans force the united states to stop paying its bills. the reason that has been rocked by violence and plagued by suicide bombers, they wondered how they would take care of families if the checks stop coming next month. the troops also pressed mullen on how it would affect military operations. what is it going to take to find a solution to the debt crisis? wolf blitzer and don lemon break down the hurdles and options. don't miss get it done tonight 9:00 eastern only on cnn. i'll be back in one hour from now with the latest from washington as negotiations continue to work out a debt deal before tuesday's deadline. the best political team on television is gatng